Business ethics

1. Unit 4
Role of
Corporate
Culture in
Business
Prepared & presented by: Ms.
Himani R.

2. Layout
Meaning
Functions
Impact of corporate culture
Cross cultural issues in ethics
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Prepared by: Ms. Himani R.

3. Meaning
Corporate culture refers to the beliefs
and behaviors that determine how a
company's employees and management
interact and handle outside business
transactions.
Often, corporate culture is implied, not
expressly defined, and develops
organically over time from the cumulative
traits of the people the company hires.
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Prepared by: Ms. Himani R.

4. 4
Prepared by: Ms. Himani R.

5. How can one determine a
company’s corporate culture?
 Dress code,
 Business hours,
 Office setup,
 Employee benefits,
 Turnover,
 Hiring decisions,
 Treatment of clients,
 Client satisfaction, etc.
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Prepared by: Ms. Himani R.

6. Example please?
........OthersCollegePptGoogle Office Zurich (CH).pps
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Prepared by: Ms. Himani R.

7.  Google Inc. (GOOGLE) is a company that is well-
known for its employee-friendly corporate culture.
 It explicitly defines itself as unconventional and offers
perks such as
 Telecommuting,
 Flextime,
 Tuition reimbursement,
 Free employee lunches,
 On-site doctors and,
 On-site services like oil changes,
 Massages,
 Fitness classes,
 Car washes and
 A hair stylist.
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Prepared by: Ms. Himani R.

8. Functions of corporate culture
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9. 9
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10. 10
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11. 11
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12. 12
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13. 13
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14. 14
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15. 15
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16. 16
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17. 17
Prepared by: Ms. Himani R.

18. Impact of corporate culture
Risk: The corporate culture dictates how much risk an
organization is willing to take when it comes to research
& development, client interaction, investing in equipment
and any other activity that involves risk.
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19.  Employee Retention: The ability to retain
employees can be weakened when the promises
made by the company in regards to company
growth and employee opportunity are
compromised by a lack of trust.
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Prepared by: Ms. Himani R.

20.  Incentive Pay: Incentive pay is something that employers
use to improve productivity and maintain employee
morale. But incentive programs need to be monitored and
administered carefully to avoid creating a culture of
expectation.
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Prepared by: Ms. Himani R.

21.  Focus: A corporate culture that each employee
subscribes to helps to create focus among the staff.
When employees abide by the company's beliefs
and values, it gives a unified impression to vendors,
clients and partners.
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Prepared by: Ms. Himani R.

22. Issues in ethics
 Remember that ethics does not refer only to
financial favors, i.e., corruption, but includes:
Conflict of interest, Misuse of position by abusing
ones office (e.g. misusing confidential information,
office property, official time etc.).
 Different cultures have different rules of conduct.
 Some cultures view certain ethical practices with
different levels of criticism (Pitta et al ., 1999)
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Prepared by: Ms. Himani R.

23. Cross cultural issues
 Many of the differences in ethical behavior result
from the world’s cultural diversity.
 Most pressing challenge for international marketing
is tolerance of diversity.
 American Culture: Rights of mankind to Life,
Liberty, The pursuit of happiness and exercised in an
environment in which people are equal under the
law.
 Saudi Arabia: Women are not allowed to drive, but
they can use a male chauffeur. Most activities
outside her home requires the mediation of a female
servant, male relative or a male servant e.g.,
chauffeur or gardener.
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Prepared by: Ms. Himani R.

24.  Ghana: It is generally improper to pass or receive
items with the left hand. Right hand or both hands
are the norm.
 It is common and appropriate for friends of the
same sex to hold hands while walking/speaking. It
does not signify anything beyond friendship.
 It is impolite to place feet on chairs, desks, or tables
especially those being used by another person.
 Most initial business visits occur at home and it is
polite to take a small gift for children.
 Guests are always served drinks and other
refreshments. It is impolite to refuse these offers.
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25. Prepared by: Ms. Himani R.
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